Brazil will not again grow between 7% and 8% annually, says economist Dani Rodrik, professor of international political economy at Harvard University and a leading expert in development economics.

According to Rodrik, the beneficial global environment — high-growth in China, high commodity prices, growth in advanced countries — will not be repeated. “It is unrealistic to expect a growth rate of 3% to 4% in Brazil,” said Rodrik, who attended yesterday’s seminar by the magazine “Carta Capital”.

According to him, the phase of high growth in the world is over. Brazil, with strong democratic institutions, is resilient. “But the country should not be overly ambitious, it needs to be careful and fiscally safe to deal with external shocks that are likely to come.”

Folha – Brazil grew 0.9% in 2012 and there is a perception that the growth model based on consumption is exhausted. What do you think?

A team of experts working for the administration of President Dilma Rousseff has warned of the existence of a “real estate burble” in Brazil with the value of houses soaring 165% in Rio do Janeiro and 132% in Sao Paulo in the last four years.

Talk to an economist about Brazil and sooner or later the same old cliché will pop up: ‘the rise of the middle classes’.

This stock phrase has become the go-to explanation for pretty much everything in Brazil; from why the country’s retailers are posting record profits, to why traffic is so bad in São Paulo, and why Chinese manufacturers are lining up to invest in local factories.

Brazilian Internal Revenue Service (Receita Federal) announced a new records showing that taxes are moving put with the economy. Dolar is stable and country risk is down but GDP prognostics for 2011 are decelerating. The first quarter of 2011 set a record for the period of R $ 311.349 billion. This amount represents a growth of 18,4% when compared to the same period of 2010. April R $ 85.155 billion in April. The amount includes all federal ta … Read More

Brazil needs to be more innovative: The excellent Schumpeter column drives home the point that not all BRICs are equal. “Can their country become an innovator in its own right, or is its recent growth little more than a by-product of China’s appetite for commodities?” “Yet Brazil suffers from two huge blocks to growth: red tape and gaping inequality. For all its recent commitment to liberalisation the Brazilian government is still a rule-spewing, … Read More

The Economist’s Big Mac Index shows that a burger is undervalued in China, but overvalued in Brazil. “Since 14.5 yuan can buy as much burger as $3.71, a yuan should be worth $0.26 on the foreign-exchange market. In fact, it costs just $0.15, suggesting that it is undervalued by about 40%. The tensions caused by such misalignments prompted Brazil’s finance minister, Guido Mantega, to complain last month that his country was a potential casualty of … Read More

A good read. 151 page PDF fileRio de Janeiro, Brazil, 16 April 2009– The World Economic Forum released today The Brazil Competitiveness Report 2009, the first ever study of this type for Brazil. The findings of the Report are being presented and discussed at the World Economic Forum on Latin America in Rio de Janeiro. The Report is the result of collaboration between the World Economic Forum and Fundação Dom Cabral.Using the Global Competitiveness Index’s methodology and the latest thinking in competitiveness research, The Brazil Competitiveness Report 2009 provides a comprehensive overview of the country’s current competitiveness landscape, highlighting strengths and problematic areas. Ranked 64th in the Global Competitiveness Index 2008-2009, Brazil posted a remarkable eight-place improvement since last year, with progress experienced in the institutional environment and labour and financial market efficiency, among others. The Report finds that weaknesses remain in the macroeconomic environment, institutions and goods and labour markets, while notable strengths are its market size as well as its sophisticated and innovative business sector.

Insightful contributions on specific challenges and opportunities for Brazil’s competitiveness written by leading academics and experts, such as Paulo Resende, Associate Dean and Coordinator of the Infrastructure and Logistics Department, Fundação Dom Cabral, Brazil and Claudia Costin, Secretary of Education of the Municipality of Rio de Janeiro, among others complete the Report. Some of the issues explored in depth include: infrastructure, public institutions, environmental sustainability, business sophistication, foreign direct investment, and innovations in the agribusiness sector.

“The Brazil Competitiveness Report 2009 is being published at an important moment for Brazil’s national competitiveness agenda, given the challenges brought about by the current global economic downturn,” said Klaus Schwab, Founder and Executive Chairman of the World Economic Forum. “Against this daunting background, it becomes even more urgent for Brazil’s public and private sectors to address together the weaknesses in the country’s competitive environment, while at the same time dealing with the negative implications of the global economic outlook. All relevant national stakeholders need, more than ever, to unite forcefully in the definition and implementation of a comprehensive competitiveness strategy that is able to ensure sustained economic growth and prosperity for the benefit of all Brazilians for many years to come.”

The Report contains detailed country profiles for Brazil and eight relevant comparator countries, providing a snapshot of each economy’s competitiveness landscape.

I was hoping to see Brazil improve, but instead it has decreased in ranking. There is much hype about Brazil these days, but they are fundamental problems (infrastructure, tax code, labor laws) that need to be resolved if Brazil is to continue to develop.